What is a Final Salary Pension

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Sometimes called a ‘Defined Benefit’ or ‘Occupational’ pension, a Final Salary Pension pays you a set amount of money for the rest of your life once you retire.

While this can provide valuable benefits and security, you also have the option to transfer your Final Salary Pension into a more flexible Personal Pension.

Your pension will offer you a ‘Cash Equivalent Transfer Value’ – the cash value placed on the total benefits of your pension. If you don’t have one of these, you can request one from your pension scheme.

These values can be very high, often hundreds of thousands of pounds, and can be more financially valuable than the guaranteed income if invested in a Personal Pension.

There are many points to consider when thinking about transferring out of a Final Salary Pension, which is why the government made it a legal requirement to take advice if your value is over £30,000.

For example, by remaining in a Final Salary Pension you could benefit from a guaranteed income for life, death benefits for your spouse and children, and inflation-linked income to keep pace with the cost of living. We’ll help you understand the benefits of transferring and of staying in your Final Salary Pension, so you can make the best decision for your personal circumstances and long-term goals.

Please note: The Financial adviser we refer you to are only able to review Final Salary Pensions with a cash equivalent transfer value of at least £100,000.